The paper studies bilateral contracting with endogenous property rights. Players engage in costly ex post adjustment of ex ante contract. After ex ante agreement on surplus sharing, players invest irreversibly production. Player costs of altering ex ante contract are transaction costs of three kinds: measurement, information and enforcement costs. Each player chooses an action which incurs tran...

This paper examines how water quality trading interacts with nonpoint-source abatement cost sharing (e.g., as currently practiced by the National Resource Conservation Service through its Environmental Quality Incentives Program (EQIP)) to promote the participation of nonpoint sources in a water quality market; participation that has thus far been noticeably lacking nationwide. As such, an idea...

In this paper, we develop a game-theoretic model that studies the contract design problem of a third party logistics buyer when he is faced with a third party logistics provider and the quality of service and the cost of providing the service are private information to the latter. We apply the Revelation Principle to our analysis and characterise the optimal contract. We show that the contract ...

background both rising healthcare costs and the global financial crisis have fueled a search for policy tools in order to avoid unsustainable future financing of essential health benefits. the scope of essential health benefits (the range of services covered) and depth of coverage (the proportion of costs of the covered benefits that is covered publicly) are corresponding variables in determini...

This paper investigates the application of radio frequency identification (RFID) technology to eliminate the misplacement problems in the supply chain, which consists of a risk-neutral manufacturer and a riskaverse retailer. By considering both fixed cost and tag cost of RFID implementation, we study the agents' incentives to adopt RFID in both uncoordinated and coordinated cases. We focus on a...

The lack of attention on the forward and backward supply chain issues, i.e., transparency between agents, information sharing, resource deployment, workforce knowledge, waste reduction, cost efficiency, management are major problems textile chain. coordination becomes difficult due to players' self-interest firmographics. It much complicated when we consider triple bottom line sustainability (T...

A companies outsource more product design and manufacturing activities to other members of the supply chain, improving end-product quality has become an endeavor extending beyond the boundaries of the firms’ in-house process capabilities. In this paper, we discuss two contractual agreements by which product recall costs can be shared between a manufacturer and a supplier to induce quality impro...

this policy brief discusses preventive care benefits and cost-sharing included in health insurance provisions of the affordable care act (aca) legislation and highlights some consequences to americans and the country in terms of healthcare costs and value.